The National Social Security Authority says it will, before the end of the year, undertake an audit of contributing members and pensioners to determine its membership and client base and better predict future cash flows while it has also begun aggressive campaign to migrate pensioners to mobile payment platforms.
This comes as the latest Auditor-General’s report noted that NSSA risked paying benefits to non-contributing individuals, the report also said the authority had no system of maintaining individual employee contribution accounts for remittances made by employers.
Employers only remit a lumped amount without providing the details of employees whose contribution has been remitted.
This, according to the AG, opens the system to fraud as NSSA will pay benefits to claimants who are not registered for the pension scheme.
In a third quarter update, chairman Robin Vela said before the end of year an audit of contributing members and pensioners will be undertaken.
“This will assist in determining our membership and client base, their characteristics and needs, address non-compliance and better project future cash flows.”
He also said the shrinking formal employment base has necessitated the authority to look beyond its traditional catchment sector. Tailor-made social security products for the informal, micro, small and medium enterprise sectors will be introduced in 2017. These will allow the informally employed to make flexible contributions
As part of its service delivery initiatives, pensioners will be migrated to mobile payment platforms in pursuit of improving convenience, reducing costs and leveraging technology while some of its head office spaces will be reconfigured to make them more accessible and client friendly.
On investments, Mr Vela said the authority is in the process of reviewing its current investment portfolio and will be taking a decision to either dispose of non-performing assets or consolidate its interests in appropriate vehicles.
“NSSA sees itself as a catalyst for economic growth with the power to influence international investors and give direction to financial markets. As such it will also actively invest in deserving National Strategic Projects that offer a good return and also contribute to the national development agenda.”
The Auditor-General’s Office had appointed Grant Thornton to assist the board with further investigative work on certain prior investment transactions of the authority.
“A draft report has now been presented to the board and a sub-committee of the board has been formed to deal with the same. The board will report to all stakeholders on the same and the corrective action it seeks to pursue in due course,” said Mr Vela. — Wires.